Mumbai: The rupee depreciated by 11 paise to 55.74 against the American currency on the Interbank Foreign Exchange in early trade on Thursday, weighed down by dollar's gains against other currencies overseas amid buying of the American currency by importers.

Forex dealers said besides dollar's gains against euro, which dropped to a two-year low, and other currencies in overseas markets, a lower opening in the equity market also put pressure on the local unit.

The rupee had lost 24 paise to close at 55.63 against the American currency in Wednesday's trade on emergence of dollar buying at fag-end of trade by importers and banks.

Meanwhile, the BSE benchmark Sensex tanked 244.96 points, or 1.40 percent, at 17,244.18 in early trade.